Restaurant Permits & Licenses in Honolulu, HI

Restaurants with a liquor license must register for liquor tax, which is 12% of gross receipts from alcohol sales. Must file Form LT-1 monthly or quarterly. Separate from GET. Requires compliance with DLIR liquor licensing.

Hawaii imposes excise taxes on cigarettes ($3.20 per pack), cigars, and e-liquids. Retailers must register and file Form TB-1. Most restaurants do not sell tobacco, so this is conditional.

Hawaii does not have a traditional sales tax but uses GET. Use tax applies to tangible personal property purchased from out-of-state vendors without paying GET. Restaurants must self-assess use tax on equipment, supplies, or inventory bought online or outside Hawaii. Reported on GET form (G-45).

Required for all businesses; renewed annually by June 30. Fees per Hawaii County Code §19-54.

Applies in Honolulu; per Revised Ordinances of Honolulu (ROH) Chapter 5. All businesses.

Verify commercial zoning for restaurant use. E.g., Honolulu DPP requires Zoning Use District verification; conditional use permit if non-conforming (ROH Ch. 21).

Required for interior alterations, kitchen installs. Fees per Uniform Building Code adoption in each county.

Per ROH Chapter 21, Article 11. Similar rules in other counties (e.g., Maui County Code Title 19).

Required for all LLCs formed in Hawaii. Annual reports required separately (see below).

All active LLCs must file annually to maintain good standing.

Required for ALL businesses in Hawaii with nexus (sales/activity). Restaurants subject to 4-4.5% GET rate depending on location.

Plan review required pre-opening ($100+ fee). Fees vary slightly by county enforcement.

Multiple classes (e.g., Class 1 Dispenser for restaurants). County-specific issuance (e.g., Honolulu Liquor Commission). Application process 6-12 months.

Filed with annual report or separately. Not required if using exact LLC name.

Primarily for lodging but could apply to restaurant with attached rentals. 10.25% TAT rate.

All businesses in Hawaii, including restaurants, must register for the General Excise Tax (GET), which is a gross receipts tax applied to all business activities. The standard rate is 4% for most counties, but 4.5% in Honolulu (Oahu). Restaurants are subject to GET on gross income. Registration is done via Form BB-1.

Restaurants located within hotels or resorts may be indirectly involved in transient accommodations tax if meals are included in room charges. However, standalone restaurants not offering lodging are not required to collect TAT. TAT is 10.25% (statewide) plus a 3% surcharge on Oahu.

Restaurants with employees must register for Hawaii employer withholding tax, which applies to state income tax withheld from employee wages. Employers must file Form N-10 (monthly) or N-30 (quarterly) and remit taxes. Registration is completed via Form BB-1.

All employers in Hawaii must register for Unemployment Insurance tax. The tax is paid solely by the employer (not deducted from employee wages). Rates vary from 0.05% to 6.4% based on experience rating. New employers start at 0.05% on first $750 of each employee’s wages.

Most LLCs are pass-through entities and do not pay state income tax at the entity level. However, if the restaurant LLC elects corporate taxation (via IRS Form 2553 or 8832), it must file Hawaii Form N-30 (annual) or N-35 (S-corp). Default LLCs are not subject to entity-level income tax.

All counties in Hawaii require a business license or privilege tax certificate. For restaurants, this is typically issued by the county treasurer. In Honolulu, Form BL-1 must be filed. Fees are based on gross income brackets. Must be renewed annually.

Employers must file quarterly unemployment tax reports and pay tax on first $56,500 of each employee’s wages. Rate varies based on experience rating.

Required for commercial kitchens, suppression systems. Per NFPA codes adopted locally.

Confirms compliance with building, fire, zoning codes.

Annual inspection separate.

Varies by county; Hawaii County Code Ch. 8.

Required for all employers with one or more employees, including part-time and minor employees. Sole proprietors are not automatically exempt unless they formally elect exclusion. Coverage must be obtained through the state fund (no private carriers allowed in Hawaii).

Not legally required by Hawaii state law, but strongly recommended and often required by commercial leases, lenders, or third parties. Covers third-party bodily injury and property damage.

Not legally required for restaurants in Hawaii. Typically relevant for professional service providers (e.g., consultants). Not applicable to standard restaurant operations.

Not universally required across Hawaii counties. For example, Honolulu may require a surety bond for certain business license types or if there is a history of violations. Bond amounts vary. Check with individual county business licensing divisions.

Required under Hawaii's compulsory auto insurance law for any vehicle registered to the business. Minimum liability coverage: $20,000 bodily injury per person, $40,000 per accident, $10,000 property damage. Applies to delivery vehicles, catering trucks, etc.

Not legally required in Hawaii, but highly recommended for restaurants serving food. Covers claims related to foodborne illness or contamination. Typically included in general liability policies.

Required as a condition of obtaining and maintaining a liquor license under Hawaii Administrative Rules (HAR §16-44-10). Coverage must include liability for damages arising from service of alcohol. Proof of insurance must be submitted to the Alcohol Beverages Division.

Required for all LLCs, especially those with employees or that file employment, excise, or alcohol taxes. Even single-member LLCs without employees may need an EIN to open a business bank account or comply with state requirements.

LLCs are pass-through entities by default. A multi-member LLC files Form 1065 (U.S. Return of Partnership Income), while a single-member LLC reports income on Schedule C of the owner’s Form 1040. If taxed as a corporation, Form 1120 is required.

Applies to all employers. Restaurant owners must withhold federal income tax, Social Security, and Medicare from employee wages and file quarterly returns. Form 940 covers Federal Unemployment Tax (FUTA).

Restaurants must provide a safe workplace, including proper handling of kitchen equipment, fire suppression systems, slip-resistant flooring, and hazard communication (e.g., for cleaning chemicals). Required to display OSHA poster (Form 2203).

Restaurants must comply with federal Clean Water Act via National Pollutant Discharge Elimination System (NPDES) indirectly through state/local pretreatment programs. Proper grease trap maintenance and food waste disposal are required to prevent sewer blockages and pollution.

FTC enforces truth-in-advertising laws. Restaurants must avoid deceptive claims (e.g., "organic," "locally sourced," "all-you-can-eat") without substantiation. Applies to websites, social media, and printed materials.

Applies only to "restaurant-type" establishments that are part of a chain of 20 or more. Requires calorie counts on menus and menu boards, a statement about daily caloric intake, and availability of written nutrition information upon request.

Required for any restaurant that sells alcohol. Must also comply with Hawaii state liquor licensing. TTB Form 5630.1a (Basic Permit) is required for federal compliance.

Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours), proper tip credit application (if using tip credit), and accurate recordkeeping. Applies to all restaurant employees.

All U.S. employers must complete Form I-9 to verify identity and work authorization. Must be retained for 3 years after hire or 1 year after termination, whichever is later.

Requires eligible employees (12 months with employer, 1,250 hours in past year) to receive up to 12 weeks of unpaid, job-protected leave for qualifying reasons (e.g., birth, serious health condition). Posting notice required.

All restaurants must pass health inspections, maintain food safety plans, ensure employee certification (e.g., ServSafe), and comply with Hawaii’s adoption of the FDA Food Code.

Required in all counties. General Excise and Tax (GET) applies to gross revenue. Must register with county and file annually.

LLCs must file an Annual Report each year during the quarter in which the original registration occurred. For example, if formed in March, the report is due every year between January 1 and March 31. The report confirms business name, registered agent, and principal office address.

All businesses in Hawaii must obtain and maintain a General Excise Tax license. Restaurants are typically taxed at 4% on Oahu and 4% on neighbor islands. Filings are due monthly or quarterly depending on annual gross income (over $20,000/month triggers monthly filing).

All restaurants must obtain a retail food establishment permit from the Hawaii DOH. The permit must be renewed annually. Inspections are conducted at least once per year, more frequently for high-risk operations.

Inspections ensure compliance with food safety regulations including temperature control, hygiene, pest infestation, and equipment sanitation. Results are publicly available online.

Restaurants are classified as high-risk due to cooking appliances and public occupancy. Inspections cover fire extinguishers, suppression systems, exits, and flammable storage. Certificate of Inspection must be displayed.

Required posters include Hawaii Minimum Wage, Workers’ Compensation, OSHA Safety Rights, and Anti-Discrimination laws. Posters must be visible to employees in a common area.

Applies to all places of public accommodation. Restaurants must ensure accessible entrances, restrooms, seating, and service counters. Menu accessibility (e.g., large print) may be required. Applies regardless of number of employees or revenue.

A Certificate of Occupancy (or Certificate of Inspection) must be obtained before opening. While not renewed annually, it must be updated if there are structural or use changes. Display may be required.

Employers must file Form 941 quarterly to report federal income tax, Social Security, and Medicare withholding. Form 940 is due annually for federal unemployment tax (FUTA). W-2 forms due by January 31.

Employers must withhold Hawaii income tax from employee wages and file Form N-9 (monthly/quarterly) and annual reconciliation (Form N-15). 1099 forms also due January 31.

All employers in Hawaii must carry workers’ compensation insurance, even if only one part-time employee. Coverage must be verified annually and reported via Form WC-1 to DLIR.

The General Excise Tax license and Food Establishment Permit must be visibly posted at the business location. Failure to display may be treated as operating without a license.

Businesses must retain tax records (receipts, invoices, payroll, etc.) for at least 3 years after filing. Employment tax records must be kept for at least 4 years. Sales tax records for 5 years in Hawaii.

NFPA 96 requires hood suppression systems to be inspected monthly by owner and serviced by certified technician every 6 months. Annual certification required and must be submitted to fire department upon request.

Restaurants must remove architectural barriers where readily achievable. Includes accessible entrances, restrooms, counters, and menus. No formal renewal, but compliance is continuous.

Grease traps must be inspected and cleaned regularly to prevent sewer blockages. Records must be kept and available for inspection.

At least one employee must be certified in food safety. Certification recognized by state or county.